Aphria Announces Closing Of $100 Million Strategic Investment From Institutional Investor

CANADA: Aphria announced that it closed its previously announced strategic investment from an institutional investor for aggregate gross proceeds to the Company of C$100,000,001.

Pursuant to the Offering, the Significant Investor has agreed to purchase 14,044,944 units of the Company at a price of C$7.12 per unit. Each unit is comprised of one common share of Aphria and one-half of one common share purchase warrant of Aphria. Each warrant will entitle the Significant Investor to acquire one common share at a price of $9.26 for a period of 24 months from the closing date of the Offering.

As previously disclosed, the Company intends to use the net proceeds from the Offering to finance international expansion, working capital and general corporate purposes.

The units and the securities comprising the units are being offered pursuant to a shelf registration statement (including a prospectus) previously filed with and declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on November 26, 2019 and, in Canada, will be offered and sold in Ontario only by way of a prospectus supplement.

“We are pleased to be closing this successful $100 million strategic investment that reinforces confidence in our business and management team,” said Irwin D. Simon, Chief Executive Officer. “Importantly, now with nearly $600 million, our balance sheet has been further strengthened and will continue to support us as we execute upon our strategic plan for continued growth.”

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration and qualification under the securities law of such jurisdiction.

Copies of the prospectus supplement and shelf registration statement are available relating to a particular offering will be available, under Aphria’s profile on SEDAR at www.sedar.com and EDGAR at www.sec.gov, respectively.

How To Begin Investing In Marijuana

With the legalization of marijuana in specific areas of Canada and the United States, you may be interested in investing in this high-growth industry. To understand the best way to do this, you need to know about the different types of marijuana stocks and what you should look for when you’re investing.

Understanding the Different Types of Marijuana Products

Over 30 US states have legalized marijuana for medical use, and in some states, it can be sold recreationally. If a person wants to purchase medical marijuana, they’ll need a prescription from a healthcare provider, which is usually for symptoms such as depression, anxiety and stress.

Medical marijuana is available in different forms that can be smoked, vaped or consumed via beverages or edible products. Cannabidiol (CBD) is a common product that comes from the cannabis plant. It doesn’t contain delta-9 tetrahydrocannabinol (THC), which has psychoactive properties. These products are usually used for health benefits.

Marijuana products that contain THC are typically used by recreational users who want to feel the effects of psychoactive properties. They tend to smoke cannabis flowers, vape concentrates or consume edibles.

Different Types of Marijuana Stocks

When you’re looking for the best marijuana stock to invest in, it’s important to understand the different types available, which include the following:

Cannabis Retailers and Growers: Companies involved in this category are involved in cultivating cannabis, which is usually done in greenhouses or large indoor facilities. They will harvest their crops and distribute end products in the form of concentrates, flowers or edibles. These companies or other independent companies can also choose to operate retail stores, which sell recreational and/or medical cannabis.

Ancillary Services and Products: It takes specific equipment to grow marijuana. The companies in this category supply lighting and hydroponic systems to marijuana growers. Large fertilizer companies can also be included in this niche.

Biotechs Focusing on Cannabis: Some biotech companies focus primarily on creating cannabinoid drugs.

Basics of Cannabis Investing for Beginners

When you invest in marijuana stocks, it’s important to apply the same type of basics that you would for any stock investment. You may want to check out the management team of a company and examine their track record. It’s best to find companies that have a strategy put in place for growth, which might include an organic plan or expansion via acquisitions.

You’ll also want to analyze competition when you’re looking for the best marijuana stock to invest in. Try and find a company that differentiates itself. You can do this by seeing if a company is working with top partners or producing a profit. The marijuana industry is still in its infancy, which means you will probably find companies that aren’t generating profits. This can be a good plan if they are focusing on growing their operations.

It’s also helpful to learn if a company is focused on targeting specific geographic markets. Each geographic market will present a unique opportunity, which can be highly beneficial to a company if they are the leader in that area.

Benefits of Investing in Marijuana

When you’re investing in the stock market, you can choose to purchase stocks and industries that are riskier than others. Marijuana stocks provide this opportunity. They can be more volatile than a lower risk energy stock or stocks related to companies selling consumer products such as household detergents. The benefit of investing in marijuana stocks becomes apparent when you look at the rewards and profits they can create.

Like any investment, you need to look at your risk profile and decide how much you want to invest in your first position. If your risk profile allows you to invest 30 percent in the category of higher-risk stocks, you may want to include one or more marijuana stocks in that part of your portfolio. To do this, it’s usually best to begin with a small position. If you recognize an uptrend in the stock or stocks you’ve invested in, you can always add more shares in the future.

Now that you have learned more about the basics of the marijuana industry and how to find different marijuana stocks, it’s time to do some research and decide on the type of company you’d like to invest in. This will help you pinpoint your decision when you are ready to make a purchase.

Learn More About Investing In The Legal Cannabis Industry

Could the green rush be the next gold rush? In the last few years, perhaps no other sector except technology has generated so much–well, buzz.

Claim your $5, and learn more about investing on Stash

Claim your $5, and learn more about investing on Stash

Claim your $5, and learn more about investing on Stash

 

 

2016 Cannabis Investment Study: 68% Of Investors Open to Businesses That Touch Marijuana

DISTRICT OF COLUMBIA: New Frontier Data, in partnership with Arcview Market Research and The Arcview Investor Network has released its 2016 Cannabis Investment Study. The study unveils insights from Arcview’s members and shows that despite the differences in regulations affecting businesses that touch cannabis and ancillary businesses that do not touch cannabis, the majority of investors (68%) are now interested in opportunities on both sides of the market.

“It is notable to see investors’ appetite is now broadening beyond just ancillary services where there has been less stigma and risk attached in the past. With the cannabis industry forecasted to grow at a compounded annual rate of 29% over the next four years, making it one of the fastest growing industries in the U.S., investors are now open to exploring any opportunity in the sector whether it touches the plant or not,” said New Frontier Data CEO and Founder Giadha DeCarcer.

“The Arcview Investor Network is, by far, the largest single source of deal flow in the fastest growing industry in America and the largest single group of investors placing capital in the sector. We were honored to be the focus of the first ever deep-dive study on actual investor’s attitudes and actions so far. There are many interesting insights in this report that could have far reaching impacts for entrepreneurs raising capital and other investors considering placing bets in this sector,” said Arcview Group CEO Troy Dayton.

When looking at the industry’s specific verticals, the highest proportion of investors were interested in ancillary commercial products (62%). Nearly half the investors (46%) were interested in non-flower products, reflecting the very strong growth in consumer demand for edibles and concentrates over the past few years. Cultivation facilities, which are the third most popular investor focus (38%), are especially attractive in markets that tightly limit the number of grower licenses. Other areas, including industrial equipment, hemp and consulting services, were of interest to a smaller group of investors, reflecting the more limited opportunities and the specialized business expertise required for those sectors.

Other key insights in this report include:

  • 65% of investors made their first investment in 2014 or later, and 71% expect to invest more in 2016 than they did in 2015.
  • Nine in ten investors are interested in medical and adult use markets, but only 36% are interested in CBD-only markets.
  • At the state level, the two markets investors are most interested in are California (57%) and Colorado (37%).
  • However, looking globally, 64% of investors expressed interest in the Canadian market, (a higher level of interest than was seen in any individual U.S. state market).
  • Preferred stock is the favored deal structure for 76% of the investors, followed by convertible debt at 73%. Public stocks were the least preferred investment approach.

The report is downloadable at https://frontierfinancials.com/investor2016 and www.ArcViewMarketResearch.com and can be ordered for $349.